Abstract

Abstract The research aims to apply cost accounting based on activities in improving the cost leadership strategy in the Light Derivatives Authority of the Dora refinery. Product costs Despite its lack of competition due to the sovereignty of the products it offers to customers in the Iraqi environment, there are a set of restrictions, including buying at subsidized prices and selling at subsidized prices, and despite achieving profits for most of the refinery’s products, but in the foreseeable future there is the possibility of withholding government support or reducing or reducing that, which affects Negatively on the annual profits achieved by the liquidator. The research was based on a basic hypothesis that applying the method of accounting for the costs of internal activities leads to improving the cost leadership strategy. It was concluded through the researchers that the application of activity cost accounting will contribute to the redistribution of activities among products in a more just manner than before. By describing the activities of oil production, and indicating the amount of what they are entitled to from resources and others, depending on the principle of consumption, for the success of implementing the method as it should.